MARKET OVERVIEW- UNITED STATES LEGAL AI SOFTWARE MARKET
Legal AI implies machine learning, the use of algorithms, speech recognition, mapping, analysis of parameters, cognitive computing with respect to the legal field. It has gained so much importance lately due to its ability to handle a large amount of data. Legal AI software refers to programs specifically designed to assist lawyers and other legal professionals in their practice. It is being used in the legal industry for document processing and classification for a wide range of matters, such as due diligence, document and contract review, compliance, contract management, knowledge management and deal analysis. An increasing number of litigations across the legal industry has led to a rise in the adoption of AI technology in the United States. It is key factor driving the growth of the market. Furthermore, technological advancements in AI software and the launch of innovative solutions are anticipated to provide lucrative growth opportunities for key players operating in the market.
MARKET DRIVERS
The growth of the market is driven by the rise in number of litigations across the region. According to data provided by the law firm Seyfarth Shaw, more than 11,400 people filed an ADA Title III lawsuit in 2021—a 4 percent increase from 2020 and a 320 percent increase since 2013. Seyfarth Shaw estimates that California's Unruh Civil Rights Act contributed to the high number of filings in the state. In 2020, more than 2,500 lawsuits were filed in federal court claiming websites were not designed to be accessible to people with disabilities, in violation of Title III. Thus, the rise in the number of litigations is expected to drive the demand for AI software to increase the efficiency of case handling. Also, the adoption of AI technology is increasing rapidly and legal departments. This is a key factor that is anticipated to fuel the growth of the market. The AI linked legal department can provide higher accuracy and reduce the time of processes. It is expected to positively impact the growth of the market over the forecast period.
MARKET OPPORTUNITIES
An increasing demand for cost reduction in the legal framework is expected to offer significant opportunities for the growth of the market over the forecast period. According to a 2020 report from the Corporate Legal Operations Consortium (CLOC), 61 cents of every dollar spent on legal costs in 2020 went to external legal costs–a 15-cent increase from 2018. This increase, combined with the year’s novel challenges, has many legal departments looking for new ways to control legal expenses beyond reviewing line items which has proven to be ineffective for many companies. Thus, a rise in demand for cost reduction in legal sector is expected to contribute to the growth of the market,
MARKET RESTRAINTS
The high cost involved with the AI software is expected to have a negative impact on the growth of the market. Also, lack of awareness regarding the use of AI software among law firms is anticipated to restrain the market growth.
MARKET GROWTH CHALLENGES
The lack of awareness about innovative and advanced applications of AI Software devices is expected to pose a key challenge for growth. Furthermore, the COVID-19 pandemic has emerged as a major challenge for the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the United States Legal AI Software market including, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. An increase in the adoption of AI technology has led to a rise in demand for legal AI software, and therefore, the market is expected to witness growth at a specific CAGR from 2023-2029.
UNITED STATES LEGAL AI SOFTWARE MARKET SEGMENTAL OVERVIEW
United States Legal AI Software market comprises of different market segments like component, deployment type, organization size, end-users and Country.
UNITED STATES LEGAL AI SOFTWARE MARKET BY COMPONENT
On the basis of component, the United States Legal AI Software market consists of key segments like
The solutions followed by services segment are expected to gain a major share of the market over the forecast period. Under the solution segment the legal AI software offers eDiscovery, contract management, case prediction, end point security, compliance and other solutions. Law firms spend a large amount of time in the contract review process to analyze various risks. AI is enhancing contract assessment and management services. Thus, the rise in the usage of advanced AI software solutions like contract management is expected to fuel the growth of the segment.
UNITED STATES LEGAL AI SOFTWARE MARKET BY DEPLOYMENT TYPE
By deployment type, the United States Legal AI Software market includes segments like
The on-premise segment is expected to lead the market over the forecast period. The legal AI software deals with the massive amount of confidential data daily, and it is important to keep that data secure. Therefore, several organisations are using the on-premise deployment as it offers complete security control for different users.
Also, the cloud-based segment is expected to witness high growth over the estimated time period. Reducing expenses is essential in any business model and every cloud-based system is able benefit from this factor alone. Thus, cost-effectiveness provided by the cloud-based software is expected to drive the growth of the segment.
UNITED STATES LEGAL AI SOFTWARE MARKET BY ORGANIZATION SIZE
By organization size, the United States Legal AI Software market includes segments like
- Large organizations
- Small and medium-sized organizations
The large organizations segment is expected to dominate the market over the forecast period. Large enterprises are more feasible to adopt the advanced technologies than small and medium scale industries. Also, the requirement of AI software is higher in large organizations than the small and medium scale industries
UNITED STATES LEGAL AI SOFTWARE MARKET BY END-USER
The United States Legal AI Software market finds major end-users like
- BFSI
- Healthcare
- IT & telecom
- Media and entertainment
- Government
- Others
The BFSI segment is expected to lead the market during the forecast period. An increasing demand for Legal AI Software in banks and financial institutions due to a rise in the number of financial disputes and lawsuits is a major factor expected to drive the growth of the segment.
The government segment is expected to witness high growth over the estimated time period. An increase in number of lawsuits involved in local and federal government is a major factor driving the growth of the segment.
COVID-19 IMPACT ANALYSIS ON THE UNITED STATES LEGAL AI SOFTWARE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Legal AI Software market. The report involves an exclusive study on COVID-19 impact analysis. In addition, the report also includes a complete analysis of changes in the United States Legal AI Software market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on United States economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
The COVID-19 pandemic has been a surprising test for communities, businesses, and consumers causing economic hardship and widespread concern across the globe. The outbreak of COVID-19 has negatively impacted the growth of the market as many law firms were closed during the pandemic. However, due to the emergence of the pandemic, many law firms have started operating online, and court proceedings were conducted online. The 2020 CARES Act authorized federal judges to use video and telephone conferences during the COVID-19 emergency, including, with the defendants' consent, in certain criminal proceedings. In response, the Judicial Conference of the United States issued an exception, for the duration of court-ordered emergency procedural orders, to the federal prohibition of cameras and broadcasting in federal court. Thus, rise in the utilization of AI software for increasing productivity and efficiency is expected to drive the demand for legal AI software in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the United States Legal AI Software market is majorly focused on expanding the growth of the legal AI software industry in the United States with new product innovation, business expansion, and the increasing presence of a range of service providers operating in the legal AI software sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the requirements of consumers, which further contributes to healthy growth in the market.
The key players studied in the market are
- IBM (US)
- OpenText (US)
- Thomson Reuters (US)
- Veritone (US)
- ROSS Intelligence (US)
- (US), LexisNexis (US)
- Neota Logic (US)
- Everlaw (US)
- Legalsifter (US)
- Pensieve (India)
- Cognitiv+ (UK)
- Casetext (US)
- Klarity (US)
- Omni Software Systems (US)
- Nalanda Technology (UK)
- LawGeex (Israel)
- Kira (US)
- CaseMine (India)
RECENT DEVELOPMENT:
January 2022: LinkSquares, declared the new AI capabilities of its pre-signing technology, LinkSquares Finalize. LinkSquares Finalize's AI-powered contract reviews enable legal teams and general counsel to automate checks, reveal important information from contracts, boost transactions, minimize risk, and reduce manual processes. By expanding LinkSquares' AI capabilities from Analyze, LinkSquares' post-signature tool, to Finalize, the company targets to offer the first end-to-end AI-powered contract lifecycle management platform.
June 2021: Thomson Reuters introduced HighQ Contract Analysis, a contract review and analysis tool that uses machine learning to provide clear, concise answers to specific questions sought after by legal experts. For transaction due diligence, compliance reviews, and contact investigations, HighQ Contract Analysis combines machine learning and pre-trained models to assist lawyers in enhancing efficiency, reducing risk, and speeding up the contract review process.
